The Income Tax (Country-by-Country Reporting) Regulations 2018 was recently released to set the framework for the automatic exchange of Country-by-Country Report (CbCR) in accordance with the Multilateral Competent Authority Agreement signed by Nigeria in January 2016 and ratified by the Federal Executive Council in August 2016.

The Regulation has an effective date of January1, 2018 as the Regulation is effective for Reporting Accounting years of MNE groups beginning on or after 1st January 2018.

 The primary objective of the Regulation is to provide guidance to Multinational Enterprises (MNEs) or entities in Multinational group on their reporting obligations to the Federal Inland Revenue Services as it relates to their global activities, profits, taxes, accumulated earnings and other indicators of the MNE group’s economic activities. The provision of the relevant information by the MNEs will enable the FIRS to conduct improved transfer pricing risk assessments and prevent tax evasion or tax avoidance through base erosion and profit shifting (BEPS).

Filing Obligation and Notification Obligation under the country-by-country regulations are

  1. Nigerian headquartered MNEs and their local subsidiaries with consolidated group revenues of ₦160 billion (in the preceding accounting year) who have an obligation to prepare and file CbCRs with the FIRS annually. This is to be done no later than 12 months after the group's accounting year end date with effect from the accounting year beginning on or after 1st January 2018.


  1. Nigerian subsidiaries of foreign MNEs with consolidated group revenues of ₦160 billion (in the preceding accounting year) are required to notify the FIRS of the identity and tax residence of the entity making the CbCR disclosure on behalf of the group. This notification is expected to be filed no later than the last day of the group's accounting year.


Filing and Notification Exemptions

  1. The provisions of the regulation does not apply to Groups that operate solely in Nigeria.
  2. The regulation exempts MNE groups that have consolidated group revenue LESS than N160 billion in the immediately preceding accounting year from submitting and notifying the FIRS.
  3. Ultimate Parent Entity will not be required to file a CbCR with the FIRS if the MNE group has elected a constituent entity to act as a surrogate Parent Entity to file the CbCR with the FIRS.



  1. Late filing of the CbCR will attract a penalty of N10million in the first instance and N1million for every month in which the failure continues.
  2. False declaration or filing of incorrect information in the CbCR will attract N10million.
  3. Failure to notify the FIRS of the identity and tax residence of the entity within the group who has the responsibility to file the CbCR on behalf of the group will attract a penalty of N5million in the first instance and N10,000 for every day of default.

Should you require further clarification on this regulation, please contact us through:-

Contact persons/addresses

Tax Partner: Mr. Mark Ariemuduigho


Mobile Phone: +234 802 310 6422

Senior Manager Tax: Mrs. Oyinkansola Fuwape


Mobile Phone: +234 802 312 4267


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